Are Workers' Enterprises Entry Policies Conventional

Michele Moretto and Gianpaolo Rossini

No 9334, Economic Theory and Applications Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: One of the main reasons why workers' enterprises (WE) still represent a relevant chunk of the economy may lie in some affinities with conventional profit maximizing firms. To prove this, we compare the entry policies of WEs and conventional firms when they can decide size at entry while having to stick to it afterwards. Even though short run differences remain, a long run coincidence appears besides that under certainty. Endogenizing size and time of entry in an uncertain dynamic environment we see that WEs enter at the same trigger and size of conventional firms. Both of them wait less and choose a dimension larger than the minimum efficient scale. This may be another way to explain why WE are still an important share of the economy (Hesse and Cihàk, 2007) despite the ongoing mantra of their imminent demise.

Keywords: Labor; and; Human; Capital (search for similar items in EconPapers)
Pages: 14
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/9334/files/wp070031.pdf (application/pdf)

Related works:
Journal Article: Are Workers' Enterprises Entry Policies Conventional? (2008)
Working Paper: Are Workers Enterprises Entry Policies Conventional? (2008)
Working Paper: Are Workers' Enterprises entry policies conventional? (2007)
Working Paper: Are Workers. Enterprises Entry Policies Conventional (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:feemet:9334

DOI: 10.22004/ag.econ.9334

Access Statistics for this paper

More papers in Economic Theory and Applications Working Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search (aesearch@umn.edu).